You are comparing two investment options that each pay 6% interest, compounded annually. Both options will provide you with $12,000 of income. Option A pays $2,000 the first year followed by two annual payments of $5,000 each. Option B pays three annual payments of $4,000 each. Which one of the following statements is correct given these two investment options? Assume a positive discount rate. Both options are of equal value since they both provide $12,000 of income.

a. Option A has the higher future value at the end of year three.
b. Option B has a higher present value at time zero.
c. Option B is a perpetuity.
d. Option A is an annuity.

B) Option B has a higher present value at time zero.

Explanation:

the present value of option A = ($2,000 / 1.06) + ($5,000 / 1.06²) + ($5,000 / 1.06³) = $1,886.79 + $4,449.98 + $4,198.10 = $10,534.87

the present value of option B = ($4,000 / 1.06) + ($4,000 / 1.06²) + ($4,000 / 1.06³) = $3,773.58 + $3,559.99 + $3,358.48 = $10,692.05

present value of option B ($10,692.05) is higher than the present value of option A ($10,534.87)

prokaryotic cells do not contain a nucleus or any other membrane-bound organelle. eukaryotic cells contain membrane-bound organelles, including a nucleus. so i belive the answer is a : p hope it

disadvantages of leasing a vehicle: no vehicle equity and mileage limitations

disadvantages of purchasing a vehicle: large down payment and vehicle depreciation

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